AM Best has affirmed the financial strength rating (FSR) of A- (Excellent) and the long-term issuer credit rating (Long Term ICR) of “a-” (Excellent) of Ocean International Reinsurance Company Limited (Ocean Re) (Barbados).
The outlook for these credit ratings is stable.
The ratings reflect Ocean Re’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best says the stable outlooks recognise the disciplined underwriting by the company to deploy its capital with profitable results through higher geographical diversification.
Ocean Re is a Barbados-based reinsurer, licenced as a Class 2 insurance company, which offers a diversified product mix worldwide with a relevant presence in Latin America. The company also offers facultative reinsurance programmes that are fully funded to the projected ultimate losses of the company’s clients.
According to the ratings company, Ocean Re’s regional geographic footprint has continued to expand, reaching into 127 countries, with capacity to further diversify its risks insured throughout Latin America, Asia, Middle East and North Africa, among other regions.
To further improve its underwriting, AM Best indicates that the company has acquired some of its business partners’ operations, gaining expertise and exclusivity over those channels, regions and markets.
The company’s risk-adjusted capitalisation remains at the strongest level, as measured by Best’s Capital Adequacy Ratio and has benefited from a capital contribution received in early 2020 and profitable results up to July 31, 2022.
The broadest geographic diversification could reflect an improvement in required capital over the medium term. However, AM Best says they will continue to monitor the influence of the holding company on Ocean Re’s balance sheet strength due to its financial leverage and evolving corporate structure.
